Nifty 50 crash! Nifty BeES clocks record volume on the day when index fell over 800 points

On the day when the Nifty 50 crashed more than 800 points, there was huge buying witnessed in the Nippon India ETF Nifty BeES. As per the Nippon India fund house, the total Nifty50 ETF volume on February 24, 2022, was about Rs 540 crores on NSE, of this Nippon India ETF Nifty Bees ranked first at approximately Rs 351 crores on NSE, and, this happens to be a new record in ETF volumes. On February 24, Nifty 50 index sank 815 points or 4.8 per cent to close at 16248.

As the stock market saw a huge fall, investors rushed to buy the dip through ETFs. The trading volume of Nippon India ETF Nifty BeES was higher than the aggregate trading volumes of all other Nifty 50 ETFs listed on the NSE. NIFTY BeES is a typical Equity Exchange Traded Funds (ETFs) combining the flexibility of stock market investment and the simplicity of equity mutual funds.

Liquidity is an important factor while considering ETF and Nippon India ETF Nifty BeES commands liquidity share on NSE.

Earlier, on 20th December 2021 Nippon India ETF Nifty Bees on NSE had crossed Rs 205 crores and today it achieved yet another milestone. This proves that liquidity is adding to liquidity.

Hemen Bhatia, Head ETF, Nippon Life India AMC said, “For smart investors today’s fall was akin to a ‘discount sale’ of branded goods, and, instead of indulging in guesswork about which individual stocks to buy, investors simply bought broad market index ETFs like Nifty50 ETF, NiftyNext50 ETF, Bank Nifty ETF and so on”.

Today’s trading volume of Nippon India ETF Nifty BeES has a lion’s share of 60% plus volume on NSE. This proves that whenever Nifty 50 (which represents stocks of the nation) crashes investors first choice is for Nippon India ETF Nifty BeES due to its humongous volume and long history.

Indian investors have well understood the sage advice of late Jack Bogle, founder and former CEO of Vanguard: “Don’t look for needle in the haystack. Just buy the haystack.”Needles are individual stocks and haystack is a broad index such as the Nifty50 Index. Taking advantage of the huge market fall, Indian investors lapped up the “stock of the nation” (term used by NSE for Nifty50 index) via Nifty50 ETFs.

Investors who wish to begin their stock market journey may consider buying an index fund or an ETF. Buying the index or the ETF means you are taking an exposure to the entire basket of stocks represented in the index. And, if you are looking to keep accumulating as and when the market falls big time during trading hours, the ETF can be the one to consider.